Tag Archives: Fool Tim Beyers

Could Zynga Rise to Its Former Glory?

By Steve Symington, The Motley Fool

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Let me start by admitting that I’ve never been fond of Zynga from an investment standpoint.

While its games might be mildly entertaining, I’ve voiced skepticism for its buybacks and acquisitions, questioned the sustainability of its business model, and frowned at the seeming lack of faith in the company demonstrated by founding CEO Mark Pincus. Remember, after all, that Pincus sold around 16 million Zynga shares for nearly $200 million just two months before the stock tanked on its terrible second-quarter results last year:

Source: ZNGA data by YCharts.

What’s more, I certainly wasn’t alone in my distaste of the company. The Motley Fool community as a whole voted Pincus the worst CEO of 2012, with additional thanks to Zynga’s skyrocketing R&D costs, a mass exodus of executive and engineering talent, and a crumbling share price.

Departure from the norm
Even so, that’s exactly why it’s so interesting that Pincus last week not only voluntarily lowered his salary to $1, but also opted out of the company’s cash bonus and equity award programs in 2013 in a radical departure from his previous actions. 

Could this be his first step toward making amends with angry shareholders? Maybe.

Then again, perhaps he’s just trying to put on a show in the fallout of his decision to sell in the face of multiple nasty insider trading allegations.

Can this house win?
However, Zynga did jump by as much as 17% last Wednesday after the company made good on its promise of officially launching its first real-money gambling titles in the U.K., including ZyngaPlusPoker and ZyngaPlusCasino. As fellow Fool Tim Beyers pointed out last week, even Zynga haters have found themselves intrigued by the massive upside potential of its bet on real-money gambling games.

Source: Zynga.

Apart from this unproven revenue stream, however, I still remain firmly in the camp of doubters who wonder whether the company can actually innovate to stay afloat. After all, The Sims Social game creator EA sued Zynga last year, claiming the smaller company blatantly copied The Sims franchise with its own version titled The Ville. While the two companies settled the suit out of court in February without disclosing terms, fellow Fool Evan Niu astutely noted many, if not all, of Zynga’s games at the time of the lawsuit appeared to have eerily similar roots in other companies’ existing titles. EA, for its part, seemed to be the only company with a large enough presence to be willing to officially call a spade a spade on paper.

Game-specific spats aside, I’m also concerned that Zynga won’t be able to consistently pump out a large enough number of massively popular, low-priced games with its core business to keep players entertained for any extended period of time. This lack of long-term sustainability is exactly why I would much prefer owning shares of EA or, better yet, gaming stalwart Activision Blizzard, which …read more

Source: FULL ARTICLE at DailyFinance

2 Reasons Google's Newest Innovation Is Here to Stay

By Steve Symington, The Motley Fool

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Two weeks ago during its annual bout of “spring cleaning,” Google announced the coming destruction of its popular Google Reader product, which was originally released in 2005.

Of course, as is the case with any established product with a core group of loyal users, droves of annoyed Google Reader fans took to the web to decry the search giant’s decision.

It’s only natural, then, for Google’s official launch last week of Keep — the company’s new aptly named note-taking app — to be met with a certain level of skepticism. After all, why in the world would anyone want to use Google’s products if they can’t be absolutely certain they will exist in another year?

Go ahead and tell that to the more than 1.5 million people who have already downloaded Keep from the Android app market, with more than 11,000 giving it an average rating of 4.4 out of five stars as of this writing.

With that in mind, here are two big reasons Google Keep is here to stay.

Working on products that matter
When Google powered down Reader earlier this month, it provided the following anticlimactic explanation on its official blog:

There are two simple reasons for this: usage of Google Reader has declined, and as a company we’re pouring all of our energy into fewer products. We think that kind of focus will make for a better user experience.

You can’t blame Google for putting the kibosh on a product with a dwindling user base, can you? In fact, from an investing standpoint, we should be relieved Google is further honing its focus on products which have the greatest long-term potential.

And that, my fellow Fools, is exactly where young applications like Keep come into play. You see, Google isn’t afraid to change for the better, and Keep’s recent introduction makes it appear as if it stands as one of those aforementioned “fewer products” into which Google is pouring its newly focused energy.

Plenty of competition
Through Keep, Android users can effectively keep track of ideas, checklists, and photos, all while simultaneously storing them in the cloud with Google Drive.

So what’s the problem? Keep is entering an already crowded market of note-taking productivity apps; Apple, for one, has long included a simple notes feature in its operating systems, and Microsoft offers its competing OneNote product (though it’s certainly not free) as well as a suite of online tools in Office 365. Most notably, however, is the well-established Evernote, which currently boasts more than 13 million downloads from the Android App market alone.

That, however, is one of the very reasons Google needs Keep so badly, and why the app is unlikely to disappear anytime soon. Prior to Keep, Google itself had offered little in the way of task management solutions, and Keep goes a long way toward filling those gaps to make Google’s comprehensive ecosystem that much stickier. 

A few days ago, fellow Fool Tim Beyers also made a great point about Keep:

The trouble with …read more
Source: FULL ARTICLE at DailyFinance